Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates in a perfectly competitive market for wreaths. Christina's Costs and Revenue Quantity Average Variable Average Total (wreaths) Marginal Cost (dollars) Marginal Revenue (dollars) Cost (dollars) Cost (dollars) 5 $20.00 $25.00 $20.00 $64.00 6 18.00 22.00 22.00 64.00 7 24.00 28.00 64.00 64.00 8 29.00 32.00 60.00 64.00 9 36.00 39.00 95.00 64.00 10 49.00 52.00 169.00 64.00 Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers to two decimal places. a. What is the profit-maximizing level of output for Christina's Christmas Wreaths?
Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates in a perfectly competitive market for wreaths. Christina's Costs and Revenue Quantity Average Variable Average Total (wreaths) Marginal Cost (dollars) Marginal Revenue (dollars) Cost (dollars) Cost (dollars) 5 $20.00 $25.00 $20.00 $64.00 6 18.00 22.00 22.00 64.00 7 24.00 28.00 64.00 64.00 8 29.00 32.00 60.00 64.00 9 36.00 39.00 95.00 64.00 10 49.00 52.00 169.00 64.00 Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers to two decimal places. a. What is the profit-maximizing level of output for Christina's Christmas Wreaths?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates in a perfectly competitive market for
wreaths.
Christina's Costs and Revenue
Quantity Average Variable Average Total
(wreaths)
Cost (dollars)
Cost (dollars)
$20.00
Marginal Cost
(dollars)
$20.00
Marginal Revenue
(dollars)
$64.00
5
$25.00
6
18.00
22.00
22.00
64.00
7
24.00
28.00
64.00
64.00
8
29.00
32.00
60.00
64.00
9
36.00
39.00
95.00
64.00
10
49.00
52.00
169.00
64.00
Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers to two decimal places.
a. What is the profit-maximizing level of output for Christina's Christmas Wreaths?
wreaths
b. What is the profit per unit if the profit-maximizing level of output is produced?
$
c. What is the total economic profit generated by producing the profit-maximizing output?
$
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